While other MediaPost newsletters and articles remain free to all ... our new Research Intelligencer service is reserved for paid subscribers ...

Subscribe today to gain access to the every Research Intelligencer article we publish as well as the exclusive daily newsletter, full access to The MediaPost Cases, first-look research and daily insights from Joe Mandese, Editor in Chief.

Hotswap uses a compression technology to transform
those fuzzy YouTube videos into HD-quality. Hotswap is currently applying for a patent.

Interestingly, the company's focus in the short-term is on e-commerce--despite the fact that it
could be used for any Web video genre. This is partly because McCombs' AutoNation chain of auto dealerships is one of the first companies to strike a deal with Hotswap, which will create high-def
images of its cars.

"With their compression technology, they are able to drastically shorten the upload time-frame, which is critical," says one AutoNation exec. says Luke Thomas, the
company's chairman, believes the auto industry will be a steppingstone to more e-commerce deals. "You will see e-commerce take off with the advent of high-quality video," he says.